FTSE nudges up as consumer confidence rebounds and US Treasury doubles bond buyback

FTSE 100 closed 0.6 per cent higher on Thursday, buoyed by a jump in consumer sentiment and a rally in commodity stocks. The rise came after the GfK consumer confidence index lifted three points to minus 14, the strongest reading since August 2024.

UK confidence lifts equities

The improved confidence reading reflects households feeling more secure about their finances and the broader economic outlook. UK consumer confidence has been a key driver for recent market moves, and the data helped miners such as Antofagasta and Endeavour surge between four and five per cent. Anglo American, which is reshaping its portfolio towards copper, added 2.8 per cent as metal prices rose on a broader commodities rally.

US Treasury doubles bond buyback

Across the Atlantic, attention turned to the United States where the Treasury announced a plan to double its buyback of long‑dated bonds. The Treasury secretary said the administration will increase short‑term borrowing to purchase $4 billion of 30‑year Treasuries, twice the amount bought in the previous quarter.

“We’re going to increase the size of the buyback,” Scott Bessent told CNBC. “I would note that it could be more than $4bn.”

Initially, the news nudged 30‑year yields down by 10 basis points, but they quickly rebounded, climbing as much as eight basis points by the end of the day. Neil Wilson, an investor strategist at Saxo UK, warned that the programme “is not a fix for the key underlying reasons why yields have broken out higher”.

Gold, often seen as a safe‑haven asset, rose to $4,543 an ounce, its highest level since early June, while the dollar slipped to its lowest against major currencies since April.

What’s next?

Analysts expect the FTSE to remain sensitive to further consumer data releases and any shifts in commodity prices. In the US, the Treasury’s expanded buyback could signal a willingness to intervene more aggressively in the bond market, potentially keeping long‑term borrowing costs in check but also raising questions about fiscal sustainability. Investors will be watching for any follow‑up statements from the Treasury and for the impact on yield curves, which could influence everything from mortgage rates to corporate financing costs.